Pensions Benefit Plans and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2014

Pensions Benefit Plans and Other Postretirement Benefits

Pensions Benefit Plans and Other Postretirement Benefits

6. Pensions Benefit Plans and Other Postretirement Benefits

The components of the net periodic pension cost for the three months ended June 30, 2014 and 2013 are as follows:

	U.S.						Non-U.S.
	2014			2013			2014			2013
Service cost	$	5		$	7		$	7		$	8
Interest cost	26			27			19			17
Expected asset return	(44		)	(46		)	(24		)	(22		)

Amortization:
Prior Service cost							(1		)
Actuarial loss	19			27			7			8

Net periodic pension cost	$	6		$	15		$	8		$	11

The components of the net periodic pension cost for the six months ended June 30, 2014 and 2013 are as follows:

	U.S.						Non-U.S.
	2014			2013			2014			2013
Service cost	$	12		$	14		$	14		$	16
Interest cost	53			54			37			34
Expected asset return	(87		)	(92		)	(46		)	(45		)

Amortization:
Prior Service cost							(1		)
Actuarial loss	36			55			11			16

Net periodic pension cost	$	14		$	31		$	15		$	21

The U.S. pension expense for the six months ended June 30, 2013 excludes $8 million of special termination benefits that were recorded in discontinued operations in 2013.

During the second quarter of 2013, the Company recorded a curtailment gain of $5 million related to modifications made to one of its U.S. postretirement benefit plans that reduced or eliminated certain health care and life insurance benefits. These modifications also resulted in a $55 million reduction in the postretirement benefit obligation that was recognized in accumulated other comprehensive income.